2019-10-17 08:35:00 Thu ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
The European Central Bank expects to further reduce negative interest rates with new quantitative government bond purchases. The ECB commits to further cutting negative interest rates to -0.5%. Also, the ECB refreshes radical monetary stimulus in the form of quantitative-easing (QE) government bond purchases. In particular, the ECB plans to buy €20 billion government bonds each month from November 2019 onwards. As the ECB president Mario Draghi expects to step down in late-October 2019, this key monetary stimulus helps fulfill his landmark legacy about a decade after the global financial crisis of 2008-2009.
Moreover, this strategic move serves as a defensive response to the recent dovish interest rate reductions in the U.S. and other countries such as India, New Zealand, and Thailand. In terms of global monetary policy coordination, these interest rate cuts anchor low and stable inflation expectations and exchange rates worldwide. The ECB can successfully assuage the concern and suspicion that most French and German central bank hawks share in recent times. Yet, the persistent negative interest rates and ad hoc QE government bond purchases draw direct criticisms from UBS and Deutsche Bank. The current monetary stimulus may or may not be sustainable in the long run.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2017-03-21 09:37:00 Tuesday ET
Trump and Xi meet in the most important summit on earth this year. Trump has promised to retaliate against China's currency misalignment, steel trade
2019-07-13 07:17:00 Saturday ET
Japanese prime minister Shinzo Abe outlines the main economic priorities for the G20 summit in Osaka, Japan. First, Asian countries need to forge the key Re
2019-11-01 12:31:00 Friday ET
Kourtney Kardashian shares the best money advice from her father. This advice reminds her that money just cannot buy happiness. As the eldest of the Kardash
2020-01-15 08:31:00 Wednesday ET
Anti-competitive corporate practices may stifle U.S. innovation. In recent decades, wage growth, economic output, and productivity tend to stagnate as U.S.
2018-01-05 07:37:00 Friday ET
Warren Buffett cleverly points out that American children will not only be better off than their parents, but the former will also enjoy higher living stand
2018-04-11 09:37:00 Wednesday ET
North Korean leader and president Kim Jong-Un seeks peaceful resolution and denuclearization on the Korean Peninsula. When *peace* comes to shove, Asia